Lewis Hamilton has ended his long-running contract saga with Mercedes by signing a new one-year deal.

The seven-time world champion's extension was announced by the sport's all-conquering team on Monday ahead of the new Formula One campaign, which gets under way in Bahrain next month.

Hamilton, 36, will be bidding to win an unprecedented eighth world title. 

Hamilton has been in the unusual situation of being out of contract since his last £40million-a-year deal expired on the final day of December.

But after several weeks of negotiations with Mercedes, the British driver's future has finally been settled, albeit with both parties agreeing to only one extra year.

"I am excited to be heading into my ninth season with my Mercedes team-mates," said Hamilton, who has spent much of the off-season training in America.

"Our team has achieved incredible things together and we look forward to building on our success even further, while continuously looking to improve, both on and off the track."